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HRA 08/10/1989 - 29666CITY OF FRIDLEY �� ' HOIISING & REDEVELOPMENT AIIT80RITY MEETING, AIIGIIST 10, 1989 __�_______________________�_______�_____________�________________ CALL TO ORDER: Vice-Chairperson Schnabel called the August 10, 1989, Housing & Redevelopment Authority meeting to order at 7:05 p.m. ROLL CALL: Members Present: Virginia Schnabel, Duane Prairie, John Meyer, Walter Rasmussen Members Absent: Larry Commers Others Present: Jock Robertson, Executive Director of HRA William Burns, City Manager and Director of HRA David Newman, HRA Attorney Julie Burt, Finance Officer APPROVAL OF JUNE 8. 1989. HOUSING & REDEVELOPMENT AUTHORITY MINLTTES • MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the June 8, 1989, Housing & Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CBAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED IINANIMOII3LY. 1. CONSIDERATION OF DEVELOPMENT AGREEMENT FOR STINSKI/HILLWIND CENTRE OFFICE BUILDING: Mr. Robertson stated that at the April 13, 1989, meeting, the HRA approved the conceptual outline for the Stinski/Hillwind project. Because so much time has passed, staff felt it was important for the IiRA to review the development agreement before execution of the final agreement. The staff is satisfied that the development agreement meets the general direction made by the HRA in April and recommend approval. Mr. Newman stated this is direct land writedown of $109,500. Construction has already started, even though the Development Agreement has not been signed, and the developer will receive the money when the project is completed. The attorney for the developer is in agreement with the recommended changes. � "�1 HOIIBING AND REDEVELOPMENT AIITHORITY MEETING PAGE 2 Ms. Schnabel asked if the developer deviates from the plans and specifications, does the contract with the HRA become null and void? Mr. Newman stated that is correct. Mr. Robertson stated the HRA previously directed Mr. Commers and himself to sign the agreement. Unless the HRA members have any objection, staff will proceed as directed. The HRA members were in agreement that Jock Robertson and Larry Comers should proceed to execute the final development agreement as previously directed. 2. CONSIDERATION OF ELECTRONIC SECURITY AND ANTI-GRAFFITI SEALER FOR FRIDLEY PLAZA RAMP: Mr. Robertson stated Mr. Burns has expressed an interest in security cameras and wanted the HRA to reconsider what was previously discussed last fall and winter in addition to getting cameras and monitoring equipment for some of the holding areas in the Police Department. � Mr. Burns stated a few weeks ago they found that the cameras for the Police Department were not in the package for audio visual in the Council Chambers, and they sought quotes for six cameras in the Police Department. While they were doing that, it was his suggestion to seek an alternate quote for a camera somewhere in the doorway area of the lower level of the ramp. He thought it might be a good idea to have at least one camera that might serve a dual purpose of screening the traffic that is coming into the Police Department and perhaps screening what is going on in one of the darker, secluded areas of the ramp. Mr. Burns stated that in discussions with Bill Hunt, Tim Turnbull, and himself, they came to the conclusion that in addition to a camera, some sound protection devices are also needed. As the HRA members recalled, the last time electronic security for the ramp was discussed, the Police Department objected to having cameras because they would have to have a staff person monitoring the TV monitor, and they did not have a person to do that. Mr. Burns stated that with the sound devices, however, the person in the Police Department need not devote full attention to the monitor. Perhaps they could have the sound devices that would be activated by a cry for help or a loud pitched disturbance. They ultimately came up with a plan to mount approximately six speakers that have the capability of hearing any level of voice or noise in the ramp, depending on how they are set for loudness. The quotes !�`, came in at approximately $3,500-3,600 for the camera and ��1 80IISIN�3 AND REDEVELOPMENT AIITHORITY MEETIN(; PAt�E 3 approximately $7,000 for the speaker system. Total estimated cost is $10,000-11,000. ]�lr. Prairie asked if having this camera and sound system would reduce the cost of insurance needed for the ramp. Mr. Burns stated they have had the risk management company look at this, but they do not believe it will impact the insurance in any way. The City Attorney, Virgil Herrick, thinks that in terms of liability, it is a discretionary matter. Mr. Newman stated $11,000 is pretty cheap compared to a legal suit sometime in the future. Mr. Meyer stated having the extra security will give people some piece of mind. Mr. Burns stated that the lower level will be a little darker in the wintertime because of snow storage by the chain link fence, and he thought a camera and sound device will give people a better sense of security. Ms. Schnabel stated that at an earlier meeting, Mr. Turnbull had ^ said that people should not feel secure just because there is a camera, as a camera can give people a false sense of security. Mr. Burns agreed, however, he stated the camera may also act as a deterrent to a potential perpetrator. Mr. Burns stated he is concerned that the camera be mounted inside Lexan or something that will protect the camera so it cannot be easily stolen or vandalized. Mr. Rasmussen asked if the company that installs the camera has any kind of policy whereby they will maintain the camera and sound device. Mr. Burns stated that is something that will have to be taken into consideration, and maybe they can have a maintenance contract with the company. There would be some additional expense for a maintenance contract. MOTION by Mr. Meyer, seconded by Mr. Rasmussen, to authorize the HRA staff to advertise and receive bids on the camera a�d monitoring equipment to be reviewed by the HRA at the September HRA meeting. IIPON A VOICE VOTE, ALL VOTIN(� AYE, VICE-CHAIRPERBON SCffiJABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. n '� HOIIBING AND REDEVELOPMENT AIITHORITY MEETING PAGE 4 Mr. Robertson stated that even though the HRA earmarked funds for painting the lower level white, the Public Safety Director, Jim Hill, and the Public Works Director, John Flora, feel the lighting level is adequate. However, John Flora, pointed out that it would cost less money to paint a sealer on the lower level which would reduce maintenance costs in the future if there are acts of vandalism and graffiti. Staff is recommending that the HRA use part of the money earmarked for painting the interior white to be used instead for a concrete sealer which will make any future graffiti easier to remove. Ms. Schnabel asked if the sealer comes in colors. Mr. Robertson stated he believed a pigment can be added to the sealer. Ms. Schnabel stated that if the sealer comes in colors, maybe the ramp could be painted with a white sealer. Mr. Robertson stated he had asked that question, and was told it would increase the costs significantly back to the level of just buying the white paint. ^ Ms. Schnabel stated that if in the future it is determined that the walls should be lighter, can paint be applied over the sealer? Mr. Meyer stated he believed they could apply a pigment sealer over the original sealer in later years. Mr. Robertson stated another thing to think about is if they apply a color, either paint or a pigment sealer, then where do they stop when painting the columns? Do they paint one side or all four sides of the column? If they are satisfied with the natural concrete color, then it has an architectural unity because they are not creating different surfaces. MOTION by Mr. Meyer, seconded by Mr. Prairie, to authorize the Public Works Director to advertise and receive bids and accept the low bid for applying a clear anti-graffiti sealer to the lower level ramp, unless the bid exceeds the amount originally earmarked for white paint. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. Mr. Robertson stated he would like to call the HRA members' attention to the last paragraph of Mr. Flora's memo on agenda page 2-B regarding the light fixtures that were not purchased. Right now they have temporary wooden bases covering up the electrical �''� system. He would propose the HRA wait on this, because they are going ahead with the TV monitoring. The HRA might decide they want � $OIISINa AND REDEVELOPMENT AIITHORITY MEETING PAGT 5 decorative metal caps in the future, and it is not necessary to act on this at this time. Ms. Schnabel asked that regarding the stress cracks that have appeared in the main joists of the ramp, can they be assured that the parking ramp structure is sound? Do they need another opinion on the stress cracks? Mr. Meyer stated he would be willing to take a look at the cracks and see if there is any reason to solicit another opinion on the soundness of the ramp. 3. CONSIDERATION OF FINANCIAL ASSISTANCE TO RETROFIT EXISTING GARAGE AND CONSTRUCT DRIVEWAY AT 5755 CENTRAL AVENUE N.E. Mr. Robertson stated that in December 1986 when the redesign of the Hathaway/Hackmann/Hillwind/Central intersection was approved, it was pointed out that Mr. Flaten's driveway would have to be rerouted. At that time, Mr. Flaten agreed to that and was directed to get some bids for changing the orientation of his garage from the north to the south. Staff had hoped to include the driveway paving in this year's street project. The Public Works Department took another look at the original proposal and decided there would ^ be a savings in constructing the new driveway by taking the driveway out on the west elevation rather than on the south elevation. Mr. Robertson stated staff has proceeded and have the low bid for the retrofit of the garage of $2,475. Staff recommends the HRA authorize the payment of $2,475 to Mr. Flaten towards the reconstruction of his garage and authorize the Public Works Director to remove the existing driveway and construct a new driveway from Hackmann Avenue to the garage at a cost of $3,500. Also, staff recommends the HRA consider granting the excess property indicated on agenda page 3-A to Mr. Flaten after the new intersection is constructed in return for his agreement to maintain said property. MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to authorize the payment of $2,475 to Mr. Flaten towards the reconstruction of his garage and authorize the Public Works Director to remove the existing driveway and construct a new driveway from Hackmann Avenue to the garage at a cost of $3,500. Also, the HRA agrees to grant the excess property to Mr. Flaten after the new intersection is constructed in return for his agreement to maintain said property. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. � � HOIISING AND REDEVELOPMENT AIITHORITY MEETING PAGL 6 4. INFORMATION ON THE COUNCIL COATFERENCE ON SEPTIOR HOUSIPTG: Mr. Robertson stated NIr. Meyer and Mr. Commers attended the July 31, 1989, Council Conference meeting concerning senior housing policy. On July 31, the Council discussed potential policies regarding senior housing and directed staff to research the types of financial tools that are available to assist senior housing. Mr. Robertson stated that he assumes that on specific senior housing proposals, the Council's direction to the HRA is to wait for City Council direction. Mr. Burns stated he feels the City Council needs to have some informal discussions soon and make some decisions on timing and policy. He stated he did not think staff has a clear sense of direction at this point from the City Council. 5. INFORMATION ON COUNCIL CONFERENCE ON CENTRAL AVENUE REDEVELOPMENT• Mr. Robertson stated that at the July 31, 1989, City Council Conference meeting, the Council also reviewed a first draft of the ^ proposed long range plan for the renovation of Central Avenue, primarily from Moore Lake Commons north past Onan, Medtronic, and the junkyards to Osborne Road. This would be one of the components of the updated Comprehensive Plan. A number of economic development, land use conflicts, and sign issues have come up over the last couple of years, and there is an urgent need for some consistent long range vision as to how to treat some of these proposals in this area. Mr. Robertson stated that as a result of this, the plan identified a number of potential redevelopment projects in the area, the idea being that as Moore Lake Commons begins to draw traffic into this area, this may trigger other development proposals. However, there are a number of potential, very expensive projects, both in public works, landscaping, and boulevard treatments on either side of Central Avenue, as well as redevelopment projects such as relocating and redeveloping the junkyards. The sense of the City Council, Mr. Commers, and Mr. Meyer was to send the staff back to produce a scaled-down version of the original long range plan which would stress those components of the original draft which are doable and financeable in the foreseeable future. Mr. Prairie stated he would like to see them get their priorities straight. He stated University Avenue is the most visible to the community. He would not like to see them get 20-30� done on 2-3 projects without finishing one project. �"`� � HOIISIN(� AND REDEVELOPMENT AIITHORITY MELTING PAGE 7 Mr. Burns stated he believed that was Mr. Commers' concern also. On the other hand, there is not much developable land left in Fridley, so it makes sense to have some policies in place to guide development in this area. Mr. Robertson stated he hopes to have a draft of the proposed long range plan for Central Avenue at the September HRA meeting. 6. INFORMATION ON 57TH PLACE ENVIRONMEATTAL TESTING AND RAPID OIL: Mr. Robertson stated he spoke with the geologist from Delta Environmental who is performing tests on the site. Based on what the geologist found, there is sufficient indication of potential ground water contamination and Delta Environmental is requesting three more testing wells. Mr. Robertson stated Dave Newman, the HRA's attorney, is advising that the HRA take no further action on the proposed redevelopment of the larger 57th Place area until the results of this report are available. Mr. Robertson stated the HRA should also be aware that Ashland Oil has submitted an application for a special use permit and variances � to redevelop the site. The site does not include the single family lot to the east previously purchased by Rapid oil Change. Ashland Oil is proposing to build a two bay drive-through facility very similar to the one at 73 1/2 Avenue/Highway 65. 7. ESTIMATE: GREENMASTERS - LAKE POINTE MAINTENANCE MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the estimate to Greenmasters in the amount of $4,644.14. IIPON A VOICE VOTE, ALL VOTIN(i AYE, VICE-CHAIRPERSON BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. 8. ESTIMATE: ROYAL ELECTRIC - EAST MOORE LAKE IRRIGATION MOTION by Mr. Meyer, seconded by Mr. Rasmussen, to approve the estimate to Royal Electric in the amount of $2,221.96. IIPON A VOICE VOTE, ALL VOTINd AYE, VICE-CHAIRPERBON 8CffiJABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. 9. CLAIMS (1916-1931): MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the check register dated August 10, 1989. �i IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CSAIRPERBON SCffiJABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. � �'1 � HOIIBING AND REDEVELOPMENT AIIT80RITY MEETING PAGE 8 Ms. Burt gave the HRA members a copy of the Financial Report for December 31, 1988. 10. OTHER BUSINESS: a. SHF Development Corporation Mr. Robertson stated the HRA members had received a copy of a letter from SBF Development Corporation addressed to him dated August 4, 1989. SBF Development Corporation is proposing the redevelopment of the Cub Food store site on the southwest corner of Osborne Road/University Avenue. Contrary to their expectations and their reassurance to the City Council that they would be able to secure total financing for the project, they are asking the City to examine the feasibility of using its T.I.F. program to underwrite about 10% of what is represented as a$5 million proj ect . Mr. Robertson stated he had asked Jim Casserly to analysis of what alternatives are available to the HRA such a mechanism of underwriting part of the primary That analysis was just received that morning, and staff time to review it. He is suggesting that staff Casserly's alternatives and have a recommendation for their September meeting. prepare an if there is financing. has not had review Mr. the HRA at b. Proposed Pro Enqineering Manufacturinq Facility Mr. Robertson stated the HRA had also received a copy of a letter from Pro Engineering, Inc., addressed to him dated August 9, 1989, and a memo he had written to the HRA dated August 9, 1989. Pro Engineering is outgrowing its existing facilities in Maple Grove and is considering relocating in Fridley. They are proposing a 24,000 sq. ft. expandable building on the north side of Fireside Drive between Viking Chevrolet and American Service Corporation. Mr. Robertson stated this is very similar to the Metal-Tek proposal reviewed and approved by the HRA last winter (which subsequently fell through). The total cost of land and building are about $1,000,000. There is no soil correction, but it will bring in about 20-30 new jobs and tax base. It is a classic T.I.F.-type project where there is a minimum type of exposure. They would accept a second mortgage of 10-15% of the total project costs. Mr. Robertson stated staff will analyze this proposal further and will bring a proposal back to the HRA at their September meeting. �� 80IIBINa AND REDEVELOPMENT AIIT80RITY MEETINa PAdE 9 c. Ron Clark Construction Mr. Robertson stated the HRA had received a copy of a letter from Ron Clark Construction, Inc., addressed to him dated August 8, 1989. This developer is interested in the southwest corner of Mississippi/University Avenue. They are interested in pursuing a proposal of approximately 50,000 sq. ft. of retail and a three- story, 100-unit apartment building. Total development costs are $10,000,000. It is in the same price range as the Tanurb proposal, but the mix is different; therefore, he believed taxes on apartments are about 600 of what they would be on commercial floor area. Mr. Robertson stated he will have a quick analysis done comparing this proposal with the general parameters of the Tanurb proposal of what kind of increment would be available and what kind of assistance would be available. He hoped to have this information for the HRA at their September meeting also. ADJOURNMENT• MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the meeting. IIpon a voice vote, all votinq ape, Vice-Chairperson � Schnabel declared the Auqust 10, 1989, Housinq & Redevelopment Authority meetinq adjourned at 8:5o p.m. Respectfully subm' ted, Lynn aba Recording Secretary ��